Year-End Tax Planning Strategies Using Profit Sharing / Solo 401(k) Plan:
Small Business owners and self employed persons have option of contributing to various retirement plans which are tax deductible for tax year 2019. Solo 401K is one of them & the last date of establishing is December 31, 2019. Some of the highlights of solo 401K plans are as under:
This is Qualified Retirement Plans for Small Business Owners
- It is one of the quickest ways to minimize tax Liability
- Tax deductible Contribution up to $50000 Per Participant
- Wide Investment Opportunities
- Asset Protection from Creditors
- Borrowing opportunity from the plan are available at prime rate ( Currently 3.25% p.a.) with no adverse tax consequences
- Catch up Contribution of $ 5500 for participant over age 50
- Control of Investment Decision with yourself.
- You are the trustee & have full checkbook control.
- Hardship Distribution allowed in many cases.
- Contribution comprise of two parts : 401(k) 100% up to $17000 ( catch up $5500 age 50 or older) & Profit Sharing Component of 25% of Eligible Compensation.
LAST DATE TO SET UP Plan is DECEMBER 31, 2019.
Please contact Krupp Consulting Inc. CPAs at 770 881 8490, if you need help understanding & setting up your plan before the deadline.